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The following data pertain to an investment proposal made to Simple Corporation: Cost of equipment needed for the investment $ 36,000 Annual cash cost savings

The following data pertain to an investment proposal made to Simple Corporation:

Cost of equipment needed for the investment $ 36,000
Annual cash cost savings $ 12,000
Annual depreciation on the equipment $ 5,000

The simple rate of return of the proposed investment is closest to:

Multiple Choice

  • 41.7%

  • 19.4%

  • 29.3%

  • 33.3%

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